Orchid Faces Insolvency Proceedings as NCLT Makes Move | CORPORATE ETHOS

Orchid Faces Insolvency Proceedings as NCLT Makes Move

By: | August 23, 2017

Aug 23:  Orchid Pharma, which had availed of a Rs 50-crore loan from Lakshmi Vilas Bank but had failed to repay the amount, will have an Interim Resolution Professional taking charge at its helm. The development comes after the National Company Law Tribunal (NCLT)  issued an order to this effect .

The Interim Resolution Professional will take charge of the management of Chennai-based pharmaceutical firm, a report said.

Meanwhile, a related report added that Orchid Pharma would go in appeal against the insolvency proceedings initiated against it following Lakshmi Vilas Bank’s plea  accepted by the National Company Law Tribunal. The pharma company hd availed of the Rs 50 crore loan backed by real-estate assets, but has failed to repay, the NCLT said.

Orchid will now look at taking legal help, and is likely to appeal before the National Company Law Appellate Tribunal. The company had been in serious financial trouble of late, with lenders and investors taking the legal route to get their money recovered.